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Delaware is tax-friendly toward retirees. Social Security income is not taxed. Withdrawals from retirement accounts are partially taxed. Wages are taxed at normal rates, and your marginal state tax rate is 4.80%.

What makes Delaware a tax haven? Companies and wealthy individuals can use Delaware to avoid paying some taxes in other states. So there's a thing called the Delaware Loophole, which essentially enables companies to avoid paying state corporate income tax where they earn the revenue.

Delaware does not impose a state or local sales tax, but does impose a gross receipts tax on the seller of goods (tangible or otherwise) or provider of services in the state.

First of all, Delaware does not have any state taxes, sales taxes, or inheritance taxes. Additionally, it imposes zero tax on Social Security benefits and offers up to $12500 exclusion from pension incomes for retirees aged 60 or above. Delaware's property tax is also very low, with a median rate of . 53%.

Delaware has a graduated state individual income tax, with rates ranging from 2.20 percent to 6.60 percent. There is also a jurisdiction that collects local income taxes. Delaware has a 8.70 percent corporate income tax rate and also levies a gross receipts tax.

Delaware has some of the lowest taxes in the country. There is no statewide sales tax, and property taxes are some of the lowest in the nation. There is a progressive income tax for the state with a top rate of 6.6%, which is slightly above average nationally.

The words “tax haven” typically invoke visions of far-off tropical hideaways like Panama, Bermuda and the Caymans. But one of the world's biggest tax havens actually sits within the bounds of mainland USA: the tiny, tax-free state of Delaware.

The state does not have a corporate tax on interest or other investment income that a Delaware holding company earns. If a holding corporation owns fixed-income investments or equity investments, it isn't taxed on its gains on the state level. Delaware also does not have any personal property tax.